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JEFAD/ERDEA/1990/13

UNITED NATIONS

ECONOMIC COMMISSION FOR AFRICA

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

EVALUATION OF RURAL DEVELOPMENT EXPERIENCES IN AFRICA

THE CASE OF MADAGASCAR By

R.RENE

Workshop on Planning and Implementation Techniques for Participatory Rural Development in Africa

630(691)06 1^925

November 19 - 24, 1990

Afica HalL ECA

Addis Ababa, Ethiopia

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UK

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ECA/FAO - ERDEA : MADAGASCAR STUDY

RURAL DEVELOPMENT EXPERIENCES IN MADAGASCAR1

1. INTRODUCTION Baseline data about madagasc&

- Surface : 587,000 square kilometres

-Population : 11,900,000 inhabitants (estimate in early 1990) - Main Cities: (estimate in 1989)

ANTANANARIVO : 1,250,000 inhabitants FIANARANTSOA : 300,000

TOAMASINA : 230,000

ANTSIRANANA : 220,000

MAHAJANGA : 200,000

- Capital: ANTANANARIVO whose features are:

altitude : 1,370 meters

hottest month : December 16-27 °C coldest month : July 9-20 "C

driest month : June 8 millimetres wettest month : January 300 millimetres

- Measure : Metric system - Currency : Malagasy Franc

The economy of Madagascar had always been based on the agricultural sector which provides more than 40 percent of the Gross National product (GNP), the 70 percent of the raw material necessary to the local industries and more than 80 percent of export receipts. 78 per cent of the population work in this sector.

Although the population increased regularly from 2.8 to 3 percent a year between 1977 and 1984, the farm production has rather stagnated if not reduced during this period. As a result this is a recurrent lack of food which has forced the country to import until 350,000 tons of rice during the year of 1986.

The Liberalization policy, an economic reform started in 1983, brought back a positive growth of the agricultural production which should be higher than 4.5 percent a year if the delay is to be caught up and food self- sufficiency to be reached in year 2000.

The Malagasy farmer is neither lazier nor less bright than another one. To be convinced, it is enough to look at those hill sides of Malagasy landscape changed in terraces of rice fields.

V Summary taken from "Evaluation of Rural Development Experiences in Africa: Case Study in Madagascar" by Rene Rabezandrina, Consultant. July 1990. Summary taken from a translation from the original French version.

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There is a real myth for rice: unfortunately, that myth has been exploited to paying cheaper the rice grower's work. Before '970, Madagascar exported rice instead to import ft, for the rice grower received e.n equitable payment. Aroi.nd 1977 until 1987, the Malagasy farmer was limited to a subsistence agriculture.

As a result, Madagascar is presently one of the poorest countries in the world with an average annual income of 200 US$ per capita (World Bank Source).

1.1. AGRICULTURAL PRODUCTION

It is essentially a subsistence agriculture. The main farming production of Madagascar is rice: the Malagasy people eat it thrice a day at breakfast, at lunch time and at dinner as possible as it is available. Out of the 1,458,823 traditional farms counted in Madagascar in 1985,1,298,973 practised irrigated or hill rice growing, that means more than 89 percent of those farms practice a subsistence agriculture.

Malagasy farms can be classified in two categories; traditional farms and modern farms.

a) Traditional farms

Features:Their cultivated surface is less than 10 hectares - They employ less than 5 permanent workers

- They are in short of high-tech equipments. It is also the case of farms using animal traction.

Number: 1,458,823 for the whole Madagascar Global surface: 1,676,164 hectares

Average national surface # 1.15 hectare, but more than half of those farms have less than 1 hectare exploited lands.

The northern farms are more spread thar the ones in South Madagascar.

Their sizes do not depend on the knowledge level of farm owners.

b) Modern farms Features

- Exploited lands higher or equal to 10 hectares, - Employing at least 5 permanent workers,

- Usage of materials, equipment or specific high-tech facilities.

Number: 512 for whole Madagascar Global surface: 79,513 hectares Average National Surface: 155 hectares

Traditional farms typology: It is assumed there is not one, but several types of small-scale or traditional farms in Madagascar.

- The average size of the farms is from 0.857 hectare to 1.481 hectare;

- Rice growing which is the most difficult crop;

- Permanent crops produce high incomes and need less work.

However, it can be assumed that the traditional Malagasy farm will exploit on average 1.14 hectare of lands of which:

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73 ares are kept for rice growing;

26 ares are for temporary food crops or cash crops;

12.5 ares for permanent cash crops and

25 ares for mixed temporary food crops and permanent cash crops.

Classification of the agricultural population according to their poverty level. The following classification and estimation have been established according to the production equipment of farmers and to the duration of their food shortage per year.

Nurter of

Classes Far Faros Features

1. Rich 512

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II. Less Poor

309,273 (2)

III. Poor 1,020,562 (3)

122,541

Total 1,458,823

Modern farms with: 0.0004%

- cultivated surface>10 hectares 0.0004%

- at Least 5 permanent workers - motorized equipment (tractor,

cultivate or...)

- livestock breeding satisfying at least the two following conditions:

. at least 15 oxen or 20 pigs . existing cow shed or pigsty . existirg temporary meadows . permanent workers

Possessing a plough and, conseque- 21.20%

ntly at least a yoke of Zebus (It is estmated to find one

plough per farm pure breeding 0.4%

(Market economy)

Without production equipment 70%

(plough) oi:her than the "angady"

(spade), the machete... May own cattle but which is not used for work or meat: only a useless breeding.

This class has been taken away 8.4%

from the above for it suffers from an emphasized food shortage during 9 to 12 months a year.

Global number of farms in 100%

Madagascar

21.60%

Sources: (1) M.P.A.R.A. - FAO: Agriculture National Census. Volume IV. (Cultivation and surface...) April 1988.

(2) M.P.A.R.A. - FAO: Agriculture National Census. Volume V. (Livestock and equipment ) April 1988.

(3) Global number -(Rich+Less Poor+Very Poor)

(4) UNICEF-OSPID - Targeting of the poorest population in Madagascar. March 1988.

The above classification, though not perfect, helps at least to have an estimated idea concerning the Malagasy farmers' poverty.

Production and land use system: Five main ecological areas can be identified in Madagascar. Land use systems vary according to areas.

The Eastern part of the island has heavy rainfall, 1,500 to 3,500 mm/year, a sharp relief and high chances of cyclone occurrence. The mean annual temperature which is above 20 " and the heavy rainfall

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distributed throughout the year make it an area unfit for livestock development. The Malagasy Zebus are unable to withstand the climate of the area. The most popular association seems to be the coffee association, along with that of several other commodities including shade trees, banana trees and food

crops.

The central High Plateau is characterized by a high population density, a hilly relief, rainfall of between 1,000 to 1,500 mm a year and a mean annual temperature, tempered by the altitude, generally below 20 ". The poor distribution of rainfall, 90% of which occurs from October to March has decreased the vegetal cover of the land compared to the ecological zone of the east.

The swamps have been developed into rice fields and the low gradient areas with colluvial deposits together with the plateaux regions are covered with cassava, corn and sweet potato plantations which are beginning to extend further to the steep hills under the influence of the population pressure, thus promoting erosion.Reforestation with eucalyptus, pine and mimosa (^cacia dealbata) trees, mostly owned by private individuals, are carried out both on the slopes and on the plateaux. The reforestation trees are used intensively for charcoal and fire wood.

Farmers in this area have a more or less advanced technique.

The mid-western zone is an area with a low population for farmer/cattle breeders and a vast stretch of grass lands periodically subject* d to bushfires. The mean annual temperature of the area is relatively high, around 20 ', but the long dry season of from six to seven months a year, with a lower relative humidity, makes it a savanna zone suitable for cattle breeding. The area around the large towns of the central High Plateaux is suitable for large-scale cattle fattening. Cassava and corn are cultivated for human consumption and as cattle feed, on the High Plateaux, when the Plateaux are not already cattle grazing grounds.

The North-West and Western region: The dry season in these regions is still long and lasts for at least seven months. The mean temperature, particularly as you approach the west coast is high, above 20 "

throughout the year. It is an extensive breeding zone where bushfires usually caused, at the end of the dry season, to cattle grazing grounds, impoverish the vegetal cover and increase the chances of erosion during the heavy rains of the wet season. The intense sedimentation which results from this creates a high cost of infrastructural maintenance (roads, dams, irrigation canals etc). Agriculture proper is carried out over the wide plains rich in alluvial deposits (baiboho) either during the short dry season (cotton, tobacco), or on irrigated lands (sugar cane, rice) or during the rainy season (rice, cassava etc). The effect of the long dry season has been that it is in fact rarely possible to find the natural forest except in the form of gallery-forest in the humid and deep valleys.

The South and South West: The area is very extensive and the population density low, but living conditions there are very harsh. The main activity there is extensive cattle breeding in which from birth to fattening on pasture, the animal only feeds on grass from natural pastures which are burnt from time to time.

Rice growing is only possible on developed and irrigated lands. In this case double rice growing is the rule.

Irrigation methods have made it possible to grow cotton and sisal on a large-scale there.

1.2. MACRO-ECONOMIC POLICY OF THE MALAGASY GOVERNMENT

Madagascar would generally like to achieve self-sufficiency in food, mainly rice, in raw materials for its local processing industries (cotton, tobacco, sugar, edible oil, wheat, beer) so as to avoid further imports, and sufficient production of export commodities to earn foreign exchange.

The government takes an active part in the current extensive system of livestock breeding in order to improve the system and in the intensification of dairy milk production and the use of feeds other than pasture grass.

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There is currently a tendency to associate production with environmental protection. It is all about developing without causing damage to the envir iment by creating popular awareness and making it possible for the people to participate in any development a .tivity. Intensification of pasture improvement currently remains one of the control method:; used to reduce bus") fires and the disastrous erosion that follows.

The government seeks main!/ to:

- Increase the education, training and awareness of the people in order to make it possible for them --> p;;;i!ripate;

■ To promote the establishment of local association or NGOs in o.der to develop agriciAure;

- To establish, strengthen and perpetuate the activities of village associations.

Rural development plan: The activities undertaken by the government with a view to increasing agricultural production are very numerous.

a) the increased use of mineral fertilizers;

b) the use of improved seeds (madagascar/FAO seed Programme);

c) intensive training-sensitization of the peasant;

d) extension of maximum output technologies (sowing of rice seeds in line) e) major agricuiturai investments in research.

These are major activities, even without taking into account the contribution of me external funding agencies detailed in table 2 below.

Unfortunately, the efforts to make the prices of agricultural products attractive have not been enough. The stabilization funds of the export products have discouraged the peasants very much.

Table 2. CONTRIBUTION OF DONORS IN THOUSANDS OF US$ 1,000 FOR AGRICULTURAL DEVELOPMENT IN MADAGASCAR

YEAR 1984 1985 1986 1987 TOTAL

DONOR MULTILATERAL AOB

EDF FAO IBRD/IDA I FAD BILATERAL

1 11

,538 276 ,648

2,356 477 1,005 11,200 1,868

1,641 1,134 33,300 4,760

1,269 6,305 2,959 46,143 3,009

3,625 9,961 5,374 102,291 9,637

FRANCE

(FAC + CCCE) 9,451 6,798 6,957 12,474 35,680

ITALY 45 182 1,970 1,737 3,934

JAPAN 2,528 2,777 474 434 6,231

NORUAY 2,213 2,419 3,735 4,488 12,855 SWITZERLAND 1,746 1,351 3,087 3,348 9,532

USA 11,000 ii,574 3,631 3,296 23,501

West Germany 2,216 2,216 3,178 3,124 10,734

Others 2,321 3,076 5,547 1,183 12,227

Total 44,980 41,299 69,434 89,869 245,582 Source: UNDP, "Development cooperation", various years.

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Factors of positive chrnge: The factors capable of eliminating or reducing the effects of socio-cultural, technical, economic and polit' al obstacles to the malagasy production are known. They are:

1) The technical f .ctor concerning the "ang&dy" or the Malagasy spade: the use of draught animals will relieve the peasant, increase his ability to cultivate the hills (if lowlands are not available), or to grow rice twice a year on his rice fields.

2) The increase in the daily wage of an agricultural work (return on labour) compared to other

■-•■".if-il'fc^ particularly commercial actsviti;.; *.% iioj -i the remuneration of the product;.' ;^.^;:<..,> too low,

*'io people will turn nu inly to more attr?c;tive monotary and commercial speculation and wil! abandon production.

3) The liberalization of the marketing of all iocal products.

Before the 1975 ' evolution, the wholesale trader in the bush, was the peasant's "banker". He gave the latter loans in kind or in cash refundable at the harvest period. With his usurious rate of interest, he was cheating the peasant but he was rendering a service to the latter who received liquid money at the time he really needed it and, the peasant was sure of being able to sell his products at the harvest season.

After 1975, the state enterprises reserved for themselves the monopoly on the purchase and distribution of products. Workers in these enterprises who are not well paid, not only continued to cheat the peasants over the prices and the weight of the items collected but also, the enterprises had problems in the immediate payment of products and in going to collect the goods in a eas of difficult access. This system discouraged the producers.

Since the complete liberalization of prices and marketing in 19.16, there has been a return to the system before 1975. We feel that the peasants who were producing surplus products for export are going to produce some more surpluses; the inconveniences created by the siate enterprises are over. However, the pleasant will find themselves before some more educated dealers, capable of organizing themselves at their expense. It is necessary to try to find solutions and maintain the fc-alance and thus make it possible for free competition to take place among the two partners dealers and peasants, so as to enable them to have similar resources.

4) The liberalization of imports and the trade in all imported items, in particular inputs.

There is currently a proliferation of private enterprises operating in this area. HOECHST, ECOPLANT, PROCHIMAD etc, which are engaging in a merciless competition to distribute their products to the peasants to the advantage of the latter. If the purchasing power of the peasants increase through an automatic adjustment in the price of rice for the producers over the inflation, we are convinced that the enthusiasm currently being shown by the dealers who distribute the inputs, will help to increase national rice production.

1.3. CONCLUSION OF PART ONE

Madagascar is a country with a lot of potential in terms of land and human resources for production and development. Tropical plants (coffee, banana)together with plants from temperate zones (wheat, and peas) grow very well in the country. The rural population is relatively educated and the six universities continue to train competent staff in sufficient numbers to meet the needs of the rural areas. Unfortunately, Madagascar has become one of the poorest countries in the World. The reasons for this situation are complex. The three cases of rural development experiences discussed in the case studies to this report may be instrumental in answering the questions that could be raised in this regard.

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2. CASE STUDY 1 - THE ASSOCIATION 0" BEEKEEPERS IN AMBOSITRA 2.1 BACKGROUND

The sub-prefecture of Ambositra is located on the High Plateau of central Madagascar, south of the Tananarive province. It is an area where beekeeping, practiced over the years, has had both successes and setbacks.

Before ' 950, the peasants of AMBOSITRA were, more advanced in beekeeping techniques than the other regions of the .eland. They normally used hives wifc ui*. jI;j fras.;_;> and a cenivifugal extractor which Utey imitated from foreign Christian missionaries. There was no outeiJc outlet probiarn until 1950 when honey from Madagascar lost its reputation on the international market as the quality was neglected.

Betwee'; 1963 and 1973, the decrease in production at the national level led the administration to establish in 1963 an Apiculture Division within the Department of Animal Husbandry. The division tried in ten years to popularize the modern techniques of production. It failed for it did not deal with the market problems.

In 1974, the administration took charge of the collection,- processing and marketing of agricultural produce by establishing centres for the processing bee products. The main objective of this decision was to resolve the problems involving the sale of these products. Indeed the action of the Apiculture Division led to an increase in the size of hives and production largely exceeded the home consu nption level and the absorptive capacity of the local market: the private collectors took advantage of the situation '.o excessively exploit the beekeepers.

Between 1982 and 1984 was a difficult period because the Apiculture division was put into abeyance. The Peasants from the region returned to the former marketing channels: the private collectors. They drew less profit from their productions while the consumer price was high.

From 1984 to date, government policy, which was ained at ensuring self-sufficiency in food and bringing in foreign exchange, decided to boost production in beeke3ping given the enormous potential offered by the country in this area. An FAO consultant, Mrs. Peterson observed that the beekeepers from AMBOSITRA distinguished themselves from the other beekeepers in Madagascar by their advanced technology and their structural organization.

On the basis of the results obtained, a non governmental organization the, A.V.E.A.M. (Association for the improvement. Extension and Development of the Mid-Mania region) which deals with the development of a number of activities (agriculture, livestock, credit, marketing) in the region, decided to establish a local beekeeping branch by organizing the beekeepers into an Association: The Association of AMBOSITRA Beekeepers was thus launched.

2.2. PROJECT DESCRIPTION

The aim was to provide a permanent outlet at a fair price to the members of the Association. The objectives were to:

a) Group the peasants according to their mutual affinities and the confidence they have in one another;

b) Give the association management autonomy by ensuring that it was run by its own beekeeper- members with its own resources;

c) Achieve financial self-sufficiency in the area of processing and packaging, as well as working capital for collection and marketing;

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d) Control the honey collected according to t'ifl specific standards before granting it the labei of the ac sociation which guarantees its quality; and

e) Find and negotiate for permanent markots in order to obtain reliable outlets.

2.3. THE ASSOCIATION

Members of the Association, who ci-rr -r '■; nu^be- .;;. tc- ; 1C. aro mairily in the neighbourhood of the city of AMEOSITRA, but the association also accept? snd buys honey from non-member beekeepers (900-1000) in the who's of the sub-prefcok'ra, If the! ;v:rsoy :v. y^ ihc quc'P.y ^v'iib.is imposed.

The General Assembly of members of the Association elects for a renewable term of two years eight members of the Executive Bureau made up of; a President, Vice-President, a treasurer, External Auditor and four Advisors. The General Assembly meets once a year and as many times as the Executive Bureau may decide.

The Executive Bureau appoints to assist it in its task, three technical support committees, for collection and marketing, each made up of three persons selected upon their agreement, from members of the association. The Bureau maintains close relations with the Board of Administration of the A.V.E.A.M (a non-governmental body which contributed to the establishment of the Association) for

- The advance of a working capital (until tl e Association was able to set up its own working capital);

- The search for permanent outlets: large narkets, wholesalers, various institutions etc.

2.3. FACTORS THAT HAVE CONTRIBUTEL TO THE SUCCESS OF THE ASSOCIATION

Political factors: There is an avowed will of the government to diversify agricultural production in general.

In addition, in an area where insecurity and cattle stealing are very high, the government is of the opinion that bee keeping can offer the youth an alternative empioymen1 to zebus cattle stealing.

Environmental factors: The undulating relief, th«> long dry or cold seasons, the relatively poor lateritic soil of the region limit agricultural activities proper. But, population pressure is high and ancestral rice fields are becoming too small for families whose numbers continue to grow. The region has a tropical mountain climate which is well suited for bee keeping. The island position of Madagascar protects bees against known contagious diseases.

All these factors help to gear the activities of the peasants to bee keeping which is also profitable and covers less

space.

The area of the project has some favourable environmental factors according to the region under

consideration. The central region where the dominant vegetation is the Eucalyptus is used to the maximum for bee keeping activities. The Eucalyptus, which covers an area of about 3000 ha, is mainly represented by the E. robusta

species which blossoms from July to September.

Economic factors: Bee keeping does not compete with the traditional agricultural activities (food crops) from the point of view of both land and season (cultivation calendar). On the other hand, it diversifies and complements the resources of the peasant. It is a branch of the livestock development sector where operating expenses can be

easily borne by the peasant. It only requires a few hours of work to carry out the daily visits except during the harvest season. In addition, the producer price of honey laid down by Agriculture Department of the Ministry of Livestock Development Varied and was always very low and discouraging for the bee keepers. But the Department

had ? a monopoly over the collection of honey.

Technical and technological factors: The abundant and varied vegetation of the region constitutes a

particularly strong base for honey production. The Malagasy bee: Apis mellifica unicofor, is unique and peculiar

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to Madagascar. \i is very prolific and quite active. Bee keeping has been an age-long activity in the region. The region is in advance in bee keeping techniques compare to the other regions ^. the Island, as a result of its more frequent contacts with catholic missionaries from abroad, who have settled hore. The native bee keeper already before 1950, licad to produce honey 3 with rotating hive, the fore runner of th\; movable current comb.

2.4. PROJECT ANALYSIS

Tk> bov i.j.poib ful* tha need to group themselves together in order w facilitate technical assistance and use of financial assistance (loans for the acquisition of langstroth bee hives, funds for collection ...). It was particuiaiiy ^<- i■*-.:~: ujtiu problem which led to the grouping of the Apiarists into an association whitfi alsu made it possible to reduce this inconveniences which led them to be scattered over space. The approach adopted consisted in not speaking harshly to the traditional Apiarists in the extension cf the modern techniques but to try gradually to improve their bee hives, and their bee keeping practices. The result was that often the same bee house had traditional rotating beehives and the modem langStroth beehives.

The Association members have regularly increased in number from 20 in 1987, to 50 in 1988, 80 in 1989 and now more than a hundred. This has thus led to the creation of new jobs or at least new activities.

Within the Association, members are more disciplined and agree to abide by a number of internal regulations.

This facilities grant of technical assistance and financial, material or moral support from outside bodies (FAO, A.V.E.A.M)

The A.V.E.A.M puts the products of the Association in supermarkets and other department stores and stands surety for them and guarantees their quality and the accuracy of their characteristics.

Participation and control elements: It is the Association members themselves who elect the Bureau. They have a right of inspection on the acccunt books of the association because they have jointly vowed to ensure the viability of the Association, that is with regard to the quality of the products and implementation of contracts entered into with various clients. The Bureau is under obligation to present a periodic report on the financial situation of the Association to all its members.

Members of the bee keepers Association were particularly aware of the fact that each one of them has an individual production enterprise. They must take care of their individual enterprises and possibly defend them, Whenever necessary. This state of mind created a strong incentive for taking part in the:

- Election of members of the Executive Bureau;

- Meetings and diverse activities of the Association;

- Control of the treasurer's accounts books.

The need to defend their own enterprises also led them to progress slowly, without any constraints in the adoption of modem techniques of bee keeping, according to the results obtained by and observed in the neighbour's camp and the material prospects of each. The peasants wanted to test the new beehive models before confiding in them. Thus they often had along with the traditional beehives which achieved little results, some modern LangStroth beehives and used the refractometer to control quality.

Their ability to read coupled with the fact that they were often in contact with missionaries from abroad enabled them access to a wider documentation. This facilitated the adoption of improved techniques and a better participation in the control of the Association.

Integration and coordination with otbtv organizations: The two main local organizations which have

relations with the Association are: A.V.E.A.M and the Technical Departments of the Ministry of Livestock Production,

water and Forestry.

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In the case of the A V.E.A.M, bee keeping is only a part of the many activities (construction of ru infrastructure Health and Social assistance, development of agriculture a: 1 livestock etc). However, A.V.E.A.M has effectively supported the Association in the search for outlets and in adv.-ncing them loans for equipment and for the first two years of the collodion exercise.

As regard to the technical department of the Ministry of Livestock, Development, water and Forestry, thsy hence forth only intervene in the bee activities upon the express request of the Association or its members for, say, technical

Jr p ••-■ " .■wth«v'>5r"iMa!\nt! h* -selected as president an official from the technical develop ic.nt of i.v: .;..:.„: -4 (who posF'T-es 60 boehV^-?). This has promoted relations between th« two.

It should be noted that a Rice Development Agency of the Ministry of Agriculture is now engaged in negotiations with the Association to protect drainage basins. The Association has plans for reforestation of the drainage basins with the Eucalyptus maculata and E. citriodora, two ; upplementary species of E. robusta, which do not blossom at the same time as the latter and which helps to prclong the honey season in the region.

Decentralization: The Assc ciation is entirely free to take any decisions affecting it both at general Assembly sessions and through its Executive Bureau. Its general policy guidelines, its financial control, and its management, form the subject of participation by its members and its members alone.

2.4.1. Growth and positive change

Evolution of production quality: Before 1987, the year in which the Association was formed, honey produced by individual bee keepers was of a very poor quality. After its establishment, the Association was then provided with a label which guaranteed the quality of its honey. The Association purchased honey at, MGF 1,500 per litre of honey from its members in 1989, while crude poor quality honey could only sell at MGF 1,000 a litre.

Evolution of production quantity: The practice of modern bee keeping has made it possible to make three to four harvest per season from July to October instead of a single or two at the maximum previously. A traditional bee hive only produces four to five kilos of honey per season, while a modem Langstroth bee hive with a super hive can produce up to 15 to 20 kg. The quantity of honey harvested and marketed by the Association was less than 500 kg in 1987, about 1,500 kg in 1988 and more than 3,000 kg in 1989.

Production does not seem f:o increase in 1990 even though the potential would be more than 6,000 kg, owing to recent developments: A firewood" project has trained many unemployed youth in the manufacture of this fuel.

This has in less than two years led to an intensive deforestation of the Eucalyptus trees. The President of the Association told us that the deforestation was responsible for the reduction of honey in the bee hives.

The price increase, which went along with the increase in individual production resulted in the following:

- Gradual replacement of the traditional beehives through the purchase of modern beehives;

- Some members were able to purchase either an animal-drawn cart or a bicycle and they all had radio sets;

- Extension of pig breeding which rose from one to two or three head, together with poultry breeding;

- Less suffering during the Icon season when rics was in short supply, for those who engage in apiculture. There was an improvement in their diet. They ate rice with honey;

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- As far as health was concerned, they suffered less than the average of the peasants for they could purchase drugs which are often lacking in the he; 'th centres.

As the vork involved in this activity was not partk* jlarty difficult the result was clearly positive.

From the ecological standpoint, the fact that the hoe keepers ensure that the cutting down of the Eucalyptus and tree in general was reduced, was an additional proper control action in this field.

2.4.2. Equity

About 40% of the Association members are workers in private or govsmrrsen ■: institutions. The remaining 60%

are farmers. However, bee keeping constitute for both categories an appreciable source of extra income even for the government workers who are in most cases more well-to-do than the peasants.

Honey bought from the producer at MGF 1,500 a litre was sold to the wholesaler, in the supermarkets at MGF 3,000. The profits made were used to:

- Settle the bills on loans contracted from A.V.E.A.M;

- Pay for miscellaneous expenses on transport, packaging, packing, etc. of the Association's products;

- Faed a compulsory savings account of the Association equal to 6% of the profits towards the construction of a small honey processing unit;

- Piace an order (if there was some of the money left) with a local artisan, for the construction of Langstroth bee hives to be sold on a credit to members; and

- Share, if there was still some remaining, among the honey dealers in proportion to the quantity of honey ttoy had supplied.

Within a similar category, it was the entire family members : father, mother and children who derived profit from the benefit? of apiculture.

Members of the Association paid no contribution. A member of bee keepers Association appointed by the Bureau and agreeing was given responsibility to receive, weigh, control and package honey from members and to pay them, in a room in the ground floor of his house. There was acceptable equity: each one brought along his

produce himself, and the collector packaging officer was paid according to his work.

The Association sold its beehives on credit only to its members and members had equal rights. They only had to register and the distribution, in case money was not sufficient, was carried out in proportion to the number of beehives in demand.

2.4.3. Institutional efficiency

The efficiency of the Association resulted from:

1) Honey collection activities;

2) The quaifty control and packaging of honey collected;

3) The various activities of the Bureau which negotiated prices with buyers, placed orders for means of production, and propagated and extended new techniques.

The A.V.E.A.M issued loans in instalments of MGF 500,000 to make it possible to pay the peasants ready

cash. This role was soon to disappear because the Association was in process of setting up its own fund for this

activity.

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In order to prevent the producers from being exploited by the private dealers, the A.V.E.A.M helped the Association to organize the sale of their produc directly to either packaging companies (the honey was thus delivered in bulk), or to the large supermarket.* /here they were delivered in containers and packed in plastic containers by the Association itself, or in the Ionizer term for expo*!.

This resulted in decrease of distribution channels, good price for the Association while still being reasonable to the consumer, packaging in small fast-selling containers of 250 q and 125 g, and quality control before delivery.

The outlet problem which was solved by i\.s A.V.E.A.M was crucial to tho Association for, honey produced

;;i !->rge qu?ntitips, was no longer being cons'jnn;d by families *.:.* :. ■ o.' \ ',, '.! ■■"., local AMDO5IYRA market The association did not employ a special person for collection and packaging. The bee keeping family with storage facilities handled reception of product, purification, packaging, and processing before delivery to the market. It received for that a commission of MGF 150 per litre of honey processed and the processing equipment and materials were supplied by the project. The members delegated power to one of their members to whom they gave a very high salary to enable him work ve^y seriously.

2.4/. Sustainability of the association

Judging by the activities of the Association in the last three years, it can be said that:

. . a) The Association is capable of meeting its current and future needs which are

- Funds for collection and production;

- Funds for amortizing equipment and possibly renewing them;

- Honey quality control and maintenance structure to preserve the outlets identified;

- Direct participation of all members in the activities of the Association with mjtual confidence in all.

b) Production relies upon an activity implanted for decades in the habits of the people of the region.

c) Replacement of the equipment is possible, for the Association was setting up, when determining the use to which the profit were to be put, a reserve fund corresponding to the amortization of the equipment.

d) The Association, through its technical support committee which is assisted by foreign specialists, offered training and refresher courses to its members in modern techniques.

e) The Association was formed at a time the country's economic liberalization was just beginning. All kinds of shortages were still acute at that time. The economic liberalization policy currently under way, which has done away with the shortages will once more promote its activities.

2.5. FACTORS LEADING TO SUCCESS

1) Identification of the specific problem of bee keepers in looking for profitable and permanent markets for honey.

2) Identification of the best way to solve the problem, which was:

- to guarantee constant quality of the product - to ensure continuous production

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- to approach a known £»nd efficient body (A.V.EAM) to contact possible buyers, guarantee the quality of the prodL :t and negotiate sales.

- To form <t ^oney producer's Association in which afl Members shall be motivated to show interest in Its succc -s.

The principles behind th-s success are the following:

1) Nothing was : ■, ot. ..-■

The assu:.:iiii!-.)-. y :& o&nio ?;om the bee keepers themselves;

- Every techrictJ or uorr.in&icia! assistance was given at the express demand of the Association members.

2) Nothing was free. Funds for equipment, collection as well as afl the association materials for production (bee hives), processing packaging, must be refunded on credit with interest, either by the beneficiary members or by the Association (joint liability for A.V.E.A.M Loans).

3) The activity regularly brought in an extra income that was quite appreciable compared to the work done. The profit was particularly high.

4) This income created an incentive for members to participate fully in the activities and management of the Association.

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3. CASE STUDY 3 THE FEDERATION OF PEASANT VINE GROWERS ASSOCIATIONS

?,.?. BASIC INFORMATION

The P-esent FedeirJ i jn of Peasant Vine growers Associations in FIANARANTSOA is the outcome of a Swiss- Malagasy project entitled C.C.V.B or "Center Vinicole of Detsileo. The Swiss cooperation assistance ended in 198G but today, five years after the and of this assistance, the Lazanny Betsileo wine continues to supply all the markets in Madagascar v-ith r. r;;' i:jf ■;; {■ ■ ' \ , vSz■•■'■) \ '^ich continues increasing. It is a successful and sustainab!.;

project.

The idea of establishing \ft\ projs^ in the FIAMARANTSOA region came from the fact that since the 1960a, about a dozen vineyards established over a total area of 250 ha of land has been cultivated by settlers and by the catholic Mission. These vineyards produced wine of an acceptable quality, onwards 1969-1970, some Malagasy peasants also started to produce wine. The project which began in 1971 had the objective of encouraging this action through the establishment of:

- Technical support for the establishment and maintenance of vineyards;

- A guarantee with the bank for loans to set up the installations;

- Peasants Associations for the harvesting, industrial processing and marketing of wine.

Currently the project is under the direct control of Malagasy Vine growers who are grouped into six Associations for all their activities. The results are excellent: currently nearly 1,000 small- scalae Malagasy vine growers cultivate 280 ha of vineyard, producing around 900 tons of grape;, from which wine is made in 4 regional cellars and a central cellar. This activity brings in considerable and quite appreciable extra income to the peasants.

3.2. PROJECT DESCRIPTION

The project aims to popularize wine growing among the Malagasy peasants through the establishment of small family units. Vine cultivation which is harvested during the lean season would make it possible to

- Increase the income of the peasants;

- Thus gradually substitute local production for imported wine;

- Provide professional training to Malagasy farmers and extension officers to replace the Swiss experts;

- Establish centres for the industrial processing of wine; and

- Bring the peasant vine growers to group themselves a into Associations capable of managing themselves and ensuring for themselves financial seif - Sufficiency.

The project covers six sectors of the agricultural extensions district of FIANARANTSOA. The number of peasant vine growers members of the F.M.V currently stands at nearly 1,000. For the past two years, there has been no further enrolment of members, but each member is able to increase the number of his units of vineyard.

Each association meets once a year at general Assembly session to:

- Review the financial operations of the previous financial year;

- Decide on the investments to be made;

- Elect the eight to ten vine grower who are members of the executive Bureau headed by a President.

The executive Bureau meets in committees whenever necessary to:

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- Prepare and organize, the vine harvest (transport,distribution of containers for transporting the gi -'.pes);

- To receive, weigh the grapes in the cellar and control its quality;

- To pay for the vine harvest.

The Association purchases the grapes from the peasants. It then becomes the collective owners of the grapes and wine resulting from it. It sells the wine in bulk either directly from wholesalers or to a central cellar of the Federation whose role is processing and bottling.

f\ tch Association elec':: ° \*ne growers to sit on the Board which elect:, te chnifman, ftc secretory, \m external auditors and its advisor?. This central Board determines:

- The price of grapes for the current year;

- The dates for the harvest;

- The distribution of possible profits, subsidies and commissions to encourage the vine growers.

It recruits the staff responsible for running the central cellar, the laboratory, the experiment lands and the general administration of the Federation. It is also responsible for sale of the Federations' products;

The staff include:

- A general manager who works in close cc operation with the chairman of the Board of Administration;

- An Administrative and Financial manager;

- A manager of Technical Division (vine growing and industrial processing of wine); and - A sales manager.

3.3. AGRICULTURAL PRODUCTION IN THE AREA

Rice is the only food which is really appreciated. Its short supply is already "a famine". Thus, it is grown on all valleys, tt is the subject of a very ingenious network of hill irrigation and development into terraces. In spite of this effort, more than 80% of the farmers run short of nee for one to three months in a year, due to lack of rice fields: the development of "the hills" in the context of the current population growth is a necessity.

Three out of four peasants in this area have at least one head of cattle or one pig and those without small farm yards are few. Cattle in this region may represent the peasant's saving account but such savings have become less dependable with the proliferation of zebu thefts. The Zebus produce manure and can sometimes be used for meat. The combination of agriculture and livestock points to a certain level of agriculture of development, for that favours vine growing, a completely new market.

All the peasants possess the angady, supplemented by the sickle. The human energy remains the main factor of production in the region. As a result the average farm in the region does noi exceed 1,05 ha. Here too as elsewhere on the Island, the Malagasy peasant works a lot but produces little.

3.4. FACTORS BEHIND THE SUCCESS OF THE PROJECT

Political factora: The Malagasy government of the time (towards the end of the 1960s) wanted to substitute part of the wine import which reached in 1971, 16 million litres a year, for local wine. This effort led to the signing with the Swiss government on 17 February 1971, of an agreement to establish an extension network of wine production in FIANARANTSOA.

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Physical factors: Hill side vineyards which is well exposed is less susceptible to f.'ost and yields a better q* iiity wine. In addition, vine can grow on (tanety) hills unfit for the growing of hill rice, thi.3 proving that poor land oruld be put to profitable use.

Economic factors: The project benefitted from a satisfactory level of conununi^tj jn infrastructure and the possibility of acquiring on the market coveted items such as radio sets, bicycles etc.

The peasant vine growers we interviewed described elements oi suu-.ess -*.. fo.i*,*vs:

- Guaranteed sale of products at a price known in aa

- Payment is made at the end of the lean season, which makes ft possible to lessen the difficulties involved and to buy a stock of rice very cheap during the harvest season that follows the lean season;

- Vine growing is very profitable; one half of the harvest is enough to refund a.'l loans contracted during the season;

- When ft is destroyed by hail the peasant is given compensation;

- The majority of the vine is grown for subsistence purposes. Vine growing is the main income-earning activity for meeting financial obligations; and

- Vine is a perennial crop. An excellent heritage for children.

The project benefitted from, the thirty year experience gained by the settlers and the vine growing Christian missionaries of the region. Looking at vineyards and the prosperity of their owners was enough to promote development of the activity in the area.

In addition, vine growing is only practiced on marginal "tanety" (hills) which are in abundance and which are traditionally used for extensive farming.

Human factors: Vine growing requires a lot of work. It would not have aroused the interest of the Betsileo farmer who is a fanatical rice grower if it had competed with rice production. Luckily, this is not the case because the hygienic processing and harvesting of vine is carried out once the rice is pricked out, during the lean working season and pruning and insect control takes place also during the lean season.

The peasant appreciates very much the fact that vine, a perennial plant which does not need to be replanted each year, starts producing from the third year as compared to fruit trees (oranges etc) which have to wart for

seven years.

3.5. PROJECT ANALYSIS 3.5.1. Progress and positive change

The objectives proved realistic. They were fully attained. Thus:

- With the 1,000 tons of grapes that the Federation now collects, it produces 700,000 litres of wine whose quality is appreciated by the local consumers, it thus contributes immensely to reducing the importation of wine.

- The peasant vine growers trained on the project have now organized themselves into cooperative societies able to manage themselves and ensure their financial self - sufficiency.

Structural relationship: Distribution of tasks withir- ■*. AssocLLljn, among the six Associations and in the Federation are well defined. Relations among the different organizations are based on this specific task distribution.

Thus, for example, the Federation does not interfere in the grape picking activities of an Association but, to maintain

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the quality of the "Lanzan'ny Betsileo" wine (trade mark of the entire Federation) it fixes the harvest dates, industrial processing standards in the regional cellars etc.

Relations with the loca! authorities are excellent: The Federation has the means for political and economic leadership in the FIANARANTSOA province.

Staff employment conditions: The Association members manage their own individual farms as they wish:

They have the option to follow or reject the ad»icf> of the extension officers but they besr the consequence from the point of view of product yield and quality, accessibility to loans etc. The salaried staff (managers, laboratory assistants, extension officers, ceflarmon, etc) ars recruited either by :he central Board or h; ih: f:.M.V Bureau concerned, depending on their job. The latter can control and dismiss them at will. But as they are clearly better paid in this sector than else where, they do satisfactory work.

Administrative and financial management: The primary activity of the Federation is the marketing of wine (packaged or loose). It is its source of income. It sells through the private whole sellers and the state Enterprises.

It makes much profit considering that in the grocer's shop the retail price of a bottle of 75 ci of wine from the Federation costs more than MGF 4,000 while less than 1.5 kilos of grapes purchased at MGF 300/kg from the producer is needed for the manufacture of this quantity.

The vine growers we interviewed were little (or not at all) aware of this management, but they participated in it by electing their representative to the central Board of Administrative.

Participation elements: The Association which settle the issue of grape transportation and payment, issues raised by vine growers, is known to the peasants. Some of the peasants have even been recruited by the as cellarmen.

The peasants can launch their protest directly to the president or to the members of the Bureau in case of a poor organization of harvest; transportation, lack of harvest containers, delay in the payments for grapes bought etc. In short, there is a high degree of participation and control exercised by the peasant vine growers in the Associations.

On the other hand, the peasants ignore the Federation completely and in practice do not participate in and have no control over the activities of the Federation. This, in our opinion is the current flaw in the project. Due to lack of evidence some malicious rumours are being spread.

Integration and coordination with other organizations: Since the suspension of the official project in 1985, the Swiss technical assistants and the workers paid by the Malagasy side (mainly the senior staff) have left the and the Federation therefore currently takes care of its workers. In spite of this gap, the relations between the Federation and the Technical Department of Agricufture are very good.

Decentralization: Within the project, the Federation does not interfere in the main activity of the regional organizations planning the harvest. This highly increases the efficiency of the organizations and surely contributes to the success of the project.

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Growth and development: The foNov'ng table shows that production membership steadily increased.

Year

:9S3 1984 1985 1986

1987 1988 1989

Gr&pe in Red

106 138 13S 138 148 200 300

Price GF

White 84 103 IDS 103 108

140 200

grape

in

Red 97.29 10S .47 144.6 200.9 279.5

207.5 140.9

Production tons

White

?.r>7.2

lOO.8 753.6 980.6

867.0 742.5

Total

354.5 530.4 945.4 954.5

1260.2 1074.5 883.5

Nunb'r of Viticulturists

Members

"/5V 783 STS'J 838 817 1013 1023

Source: CIR.V.A, FIANARAMTSOA (1990)

We can see from the above table that total production of grapes is currently around 1,000 tons. The Federation practically recruits no new member any more because the maximum capacity of industrial vine processing in its cellars has been attained. White grape, which has a per hectare yield of at least three times higher than red grape and the wine is bought cheaper than red wine. After price stagnated between 1984 and 1987, tho price of red wine doubled between 1987 and 1989 to the great satisfaction of the peasants.

Positive change brought by the project: Many of the vine growing are former vegetable growers whese work was more difficult before, because they were compelled to water the vegetables manually every two days.

A vine grower we interviewed told us that since he stated growing vine, he has been able to increase his paddy stock. There would be no problem for him in the lean season because he had purchased his paddy cheap during the harvest season. He could even sell it at a higher price during the lean season this would a markedly change his living standard for the better.

According to a sutvey, in 1985, two out of five vine growers had horse-drawn carts . The average at the national level was one out of five. The vine growers had less recourse to village self-help. Having the advantage of liquid cash, they more frequently employed wage-earners for the ploughing, transplanting and weeding of he rice fields. They are more independent, and more individualistic for self-help is a difficult traditional practice which must be constantly maintained with food, meetings and festivals.

What brought the most positive change to the lives of the vine growers was the fact that they could be paid for their harvest during the iean season. This made it possible to reduce the adverse effect created by the season.

lands.

From the ecological point of view, the very techniques imposed by vine growers helped to preserve the hiliy

3.5.2. Equity

While 90% of the members of Hie Association are peasants to whom vine growing brings in an extra financiai income, with a single unit of 25 ares, the remaining 10% are beginning to expand their vineyards, to increase their

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units to 2 ha and even to 4 ha. They are becoming professionals in vine growing and only live on that. This tendency is on the increase in view of its high profitability. Profits vary according to the surface of the vineyards.

Members of the Association pay a contrlt ution equal to MGF 3 per kilo of grapes brought to the cellar. It is a collective insurance policy against frost. They take the responsibility, together wi?h the Bureau of the Association to bring their grapes to the cellar and when they are employed by the Associations, they are paid by the Association (cellarmen etc).

Members of the Association pledge themselves to sell their produce only to thi Association. This reduces t^sfts, for those who sell grapes to various markats could sell mainly stolen grapes. u> return, members can, freely obtain loans from the Association.

3.5.3. Institutional effectiveness (efficiency)

The efficiency of the organization has been shown in the following ways.

1) Supply to members of equipment and factors of production (barrows, inputs).

2) The acceptable mastery of the operational support, that is to say organization of grape picking activities, transportation of grapes to cellars, payment vine growers dues. It is a highly successful operation.

3) Development activities. The Association is an active instruments of positive change even though some examples of its positivity are still missing:

- Participation in track repairs;

- Participation in water supply activities;

- Provision of carts and barrows to its members.

4) Grant of installation loans when they continue to recruit new members.

The Federation has its own financial resources which come from the sale of products and bank loans. The resources are highly sufficient for carrying out all its activities and for promoting the growth and net positive change of its members.

3.'5.4. Participation of members in their institutions

The survey carried out at the level of the peasants showed that at the level of the Federation their participation was nil. They do not know the institution. But, at the level of their F.M.V. their participation was more or less positive. It became positive when the peasant became aware of the fact that the Association run by their elected represent activities and people from their ranks, rendered them service mainiy by organizing grape picking activities (planned transportation), guaranteeing to all an outlet for their entire harvest, on conditions known in advance, and paying their dues more or less quickly, during the lean season.

It also became positive when they attended the general assembly session where they participated effectively in the election of members of the Bureau, laying down objectives and implementation procedure. Their participation was a guarantee for success and efficiency for it expressed the actual view point of members, their needs and criteria.

It became negative when members found that there was no evidence of management on the part of the Association with few meetings and information and no periodic report. It was also negative when attendance at meeting was low, due to lack of sufficient information on the importance of the meetings.

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There were the following problems. Although the general assembly had chosen people with the best education to form the Bureau, it was difficult to make the peasants manage the millions of Malagasy francs handled every year. Payments for a grape picking, management of mutual benefit insurance against frost, bank loans, advances in kind of agricultural and oenc'ogy inputs, annual statement of accounts, taxes owed to the state etc.

Each Association would perhaps end up amploying a professional Administrator from outside the Association.

3.5.6. Sustainability elements of the project

The best proof of the sustainability of the project is the fact that the Sw'ss and the Malagasy government have since 1985 ended its support to it. We are now in 1900, five years later, people continue to consume the F.F.M.V wine whose reputation has never fallen. The federation and its six Associations are in a position to mariage themselves and to ensure their financial self - sufficiency both now and in the future.

The 1,000 members have acquired the necessary technology to ensure a constant out production of grapes over the year (perennial plants). The cellars have competent technicians.

It has also resisted several major shocks including the fact that wine consumption in Madagascar dropped from 16 million to 4.5 million litres from 1970 to 1985 and its wine production is heavily fixed by the state.

In spite of these shocks, the Federation has still maintained the quantity and quality of its production at the ssme level as before 1985.

The current new economic trend toward liberalization will surely strengthen its position again.

3.5.7. Principles behind the success of the project

The initiators of the project adopted the following principles which contributed to the success of the operation.

From the strategic point of view:

1) To declare, from the very beginning, in the objectives the intention to render peasants vine growers completely independent of grape production up to the marketing of wine. In this objective, the structures established should at the end of the project do without any government support (financial, staff)

2) Master correctly the operations promoting production.

From the technical and social point of view:

1) To respect the existing agro-economic system by adopting:

- Simple techniques (manual cultivation, less sophisticated equipment for cellars etc);

- A unit surface of 25 ares whose management can be ensured by the peasant family itself, without having recourse to salaried manpower and without competing with the traditional food stuffs;

- The possibility of practising inter cropping in between vine lines spaced out 3 m. Vine growing does not compete with rice growing which remains the main and most important activity of the peasant. On the other hand, it has helped to strengthen it.

2) To apply an extension system which correctly coordinates the technical advice and supply of inputs (plant products, wine, fertilizers, phyto sanitary products, Loans) and which employs a well qualified staff.

This is necessary to introduce a new system of cultivation with technologies unknown to the region.

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3) To preserve at all costs the quality of wine produced.

4) To show a sign of prosperity of members to other peasants outside the Federation.

From the economic point of view:

"Vine should pay vine": there is no gift.

All loans must be repaid, the activities must enjoy financial self-sufficiency. This has convinced the peasants that they are primarily responsible for thsir own development. Except that, this is only possible if the activities (work and investment) are profitable in the eyes of the peasant. Wine has made the peasants financially satisfied and the prospect are high for most of the vine harvested. The other agricultural products of the region have a disorganized market where the sale is carried out in small amounts at prices imposed by the private dealers.

For the peasant to be sure to be able to sell everything at prices known in advance is much more important than production price level itself.

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4. CASE STUDY 3 • THE SOCIALIST COOPERATIVE OF TSARAHAFATRA MANANJARY 4.1. BASIC INFC RMATION

!n Madagascar, from 1975 up to the last two or three decades, there were no kinds of cooperative other than the socialist cooperatives. But this cooperative is far from fuelling the requirements of the present study, for simple reason that they have been a complete failure.

After the Malagasy Socialist --evolution of 1975, which established a Democratic Republic of Madagascar, some production units in the South - East of the country (MANANJARY region) were nationalized and placed under the direct control of peasant producers who organized ttiemselves in to cooperatives for Socialist system of agricultural production.

4.2. PROJECT DESCRIPTION

The purpose of establishing the cooperative was to apply the principle "from each according to his ability and to each according to his work" to a cooperative in which members manage their affairs in a planetoid manner and govern by the constitutional means and through savings.

It had at the beginning more than 200 members and had plans to continue developing the 265 ha of land in Tsarahafatra.

The Socialist cooperative for agricultural production was governed by a 16 page very detailed Constitution.

Its three main orgars:

A. The General Assembly highest organ of the cooperative has powers to study ail matters and take a decision by the majority of members present. It elects the members and the chairman of the Management committee as well as those of the control committee.

B. The management committee is the executive organ of the cooperative answerable to the General Assembly. It ensures the political, technical and financial management of the cooperative.

C. The control Committee is responsible for monitoring the political, technical and financial activities of the management committee and reports to the general Assembly.

4.3. SOCIAL ENVIRONMENT

The people have two organizations at the village level. A traditional organization divided into several large families responsible for maintaining the habits and customs and an administrative organization.

4.4. ECONOMIC ENVIRONMENT

The economy of the area is based on coffee production which forms a peasant's main source of income.

As long as the price of coffee remain high, peasants were able to buy some food items, mainly, rice. The fall in the price of coffee, Created a serious situation which forced the peasants to uproot the coffee trees to plant rice. The typical peasant is poor, he lives in a poverty system and is not able to break the circle surrounding him. He borrows money for his upkeep and during a social event he has to pay back twice as much in coffee.

4.5. ELEMENTS OF SUCCESS OR FAILURE OF THE PROJECT

Political factors: There was a strong determination on the part of the government to make the operation a political success. The political structure of the enterprise was worked out in minute detail. The agricultural

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engineers in charge of the technical management of the cooperative were selected much more on the basis of their political ideology than their technical competence. Another element of failure was also the fact that the "Front for

the Defence of the Revolution" was maoe up of a number of former political parties each of which had its own method of approach to the formation of *:he socialist cooperative. These parties were disputing with one another

over the best method of approach. This created some confusion in

Economic factors: The state-owned enterprises of the regior the entire production of the cooperative at a normal price, valid for

the importance of the socialist cooperative in the eyes of the government, these enterprises ensured that there were

no delays or other difficulties in the payment of peasant's dues.

the minds of the cooperative members, had received instructions to collect and buy all the Malagasy coffee producers, in view of

constituted an element of success which was unfortunately not enough.There was thus no outlet problem and this Human factors: The change over from private colonial farm

without a transition period. The cooperative members who were were used to receiving orders and strictly following the instruction of of collective farm owners, taken in charge of the cooperative, no income from the cooperative farms. They could not understand whai wages, the advances they received from the end of season benefits, as wage-earners to that of managing proprietors. They turned the te

toa socialist cooperative farm came suddenly wage-earners like their fathers and grandfathers, the boss. They had, with the new organization receiving wages but benefitting from the was happening but were assimilating, still on They were incapable; of changing their status

;hnicians of the cooperative into new bosses.

longer

Technical and technological factors: From the technical

cooperative had no problem: its members had known how to cultivate generations. On the other hand, they had a very low level of educa and economic management of the estate. The technicians from the b.jt the members looked upon them as bosses and they behaved

of view of coffoe production proper, the the coffee plantation over one or two ion to enable them ensure a proper financial W inistry of Agriculture were there to assist them

such.

as

4.6. PROJECT ANALYSIS

The Malagasy Socialist revolution of 1975 wanted all the means of production to be in the hands of the producers. At Tsarahafatra, the process began with the repatriation of the settler - farmers and the confiscation of the land. Then the cooperative was set up to develop the land with a management committee to manage it and

a control committee to supervise the management committee. '

It was the North Korean Agricultural Mission that laid down thte objectives of the cooperative. However, for the North Koreans whose former social structure had been completely destroyed by the war, along with their equipment it was possible to set up and lay down a totally new socia structure. In Madagascar, it was impossible.

The objectives were not realistic and could not be attained. !

earnersin this very farm before nationalization;

too much. The Technicians from the Ministry to them, they had to work more in order day. The general Assembly decided that

were being made to work like bulls Working conditions of members: The members were wage-

they used to work six hours a day and found it to be exaggerated and of Agriculture tried to explain to them that now that the estate belongs to increase their profits. The technicians proposed seven hours henceforth.no one should work more than four hours a day, "the time! they over".

Administrative and financial management: The cooperative was under the ideological and technical

supervision of the Ministry of Rural Development and Agrarian Reform. The Ministry was responsible for assisting the cooperative in ensuring its own financial and administrative management. Unfortunately, it was an impossible

task, for the members had a very low level of education: they had been mere labourers with the former settlers and

most of them were illiterate. This resulted in many carelessness and abuse.

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